Quality Management. Content of the Module
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1 235 Quality Management Content of the Module 1. Strategies and framework requirements of quality management 2. Methods and techniques of quality management Goals: Working through this Module You Will Learn 1. An overview of various fundamentals of quality management 2. Methods to implement quality management properly Description of the Content This module provides a practice-oriented introduction to the latest developments in quality management, which is designed to improve a company s internal and overall processes. In this training module the following themes, among others, will be presented: Fundamentals of quality management Total Quality Management (TQM) Norming system DIN EN ISO 9000 and EFQM Implementation and organisation of a quality management system Time Frame 4 hours Trainer s Tools Felt-tip pens, a flipchart, a board, an overhead projector (OHP), moderation cards, handouts: 6 Basic Fundamentals, 5 transparencies, and 1 checklist. Working through the module Introduction to quality management (10 minutes) 1. From the very beginning, get the participants actively involved in the topic of quality management. Bring the participants into the topic by asking them to think of an example of 99.9% quality in their world of experience (i.e. their work world, from the media or their private lives). Ask for particular cultural aspects that may differ or be similar to the quality standards of other cultures. The goal is to recognise the meaning of quality in different fields of management (approx. 10 minutes). Possible answers could be: Many letters sent by post do not reach their intended receivers, 20,000 prescriptions for medication are wrongly prescribed every year, 500 surgical operations per week are handled incorrectly. An extreme form of customer-orientation, work satisfaction, communication with others, etc. (See module Diversity and Gender ) 2. Study the case study about the White House Office of Customer Affairs and how customers can be discriminated against due to a lack of quality, (Basic Fundamentals 1). Advise the group of the various advantages of diversity.
2 236 Quality Management Total Quality Management (TQM) (60 minutes) 3. What one defines as quality has changed in the last decade. It has changed from a result-oriented perspective (input/output-orientation) to an overall, all-inclusive perspective. TQM is an integrated management strategy for the entire company based on the quality requirements of internal and external customers. Use Transparency 1 with the leadership model of Total Quality Management and Basic Fundamentals 2 to explain TQM further. Explore the different aspects based on the participants experience. Divide the group into three sub-groups and have each work on one of the three parts of TQM; total, quality and management (approx. 20 minutes). 4. Present the result connections in TQM s goal system with the support of Transparency 2. This should serve to further explain the order of the active aspects in the TQM goal system. Ask the participants why it is important to focus on the client. In the training module Fundamentals of Marketing, the importance of client-orientation is handled in detail (approx. 10 minutes). 5. In order to better see and understand TQM, have the participants split into groups of 3 to 5 people to choose a specific industry and apply TQM to it. In order to help orient them, show them the procedural model (Transparency 3). The groups should present their work at the end using the flipchart, the board, the moderation cards or the OHP (30 minutes). Quality Management Systems (135 minutes) 6. When establishing a quality management system there are certain norms that need to be focused on. Ask the participants which standardized measures they know. In addition to national standards organisations such as ANSI (the American National Standards Institute) in the U.S. and DIN (the German Institute for Standardization) in Germany, the ISO (International Organisation of Standardization) is internationally recognized. At this point present the information on the ISO (Basic Fundamentals 3) (10 minutes). 7. The DIN EN ISO 9001 is both widely used and highly valued. Develop the contents of the handout on this topic with the participants by using transparency 4 (approx. 10 minutes). 8. After discussing the background and the process of implementation, follow the phases of continual improvement (PCI). Present this process with the support of the basic fundamentals 4 and transparency 5 and discuss with the participants what it can do in practical terms to improve business (30 minutes). 9. What is highly-valued today is the EFQM-quality management system (EFQM= European Foundation for Quality Management). Present an overview of EFQM with the support of basic fundamentals 5 (approx. 15 minutes). 10. Because companies are required to follow numerous environmental requirements today, ecological components need to be added to a business s understanding of product and process quality. Present the instruments of standardization DIN EN ISO ff to provide a background on environmental management systems and discuss them with regard to the participants experience; basic fundamentals 6 (approx. 20 minutes). Summary (35 minutes) 11. Discuss the usefulness of this system in different cultures. According to intercultural research, various cultures adapt to quality management systems in different ways. Are there procedures that are especially effective in certain cultures or others that they do not work in at all?
3 Test and deepen the participants understanding of quality systems by using the checklist in the handouts. Discuss the specific learning points included in this module with the participants. Why are these questions important? What are their aims? Are there additional questions? Ask the participants to improve the checklist with concrete points. At the end of the module, the participants should be aware of the meaning and value of quality management and be able to define. Recommendation for the Trainers This module should incorporate many fundamental information sheets in order to get the participants actively involved. Focus on delivering the content of this module in a motivating way. The 4-hour training course should serve as an introduction to the broad theme of quality management. The basic fundamentals may be handed out to the participants for consolidating the subject matter after the training. Bibliography Nagel, K. (Hg.) 2000 Praktische Unternehmensführung, Analysen Instrumente Methoden, 2. Aufl., Landsberg/Lech: Verl. Moderne Industrie 1993, Ergänzungslieferung Pfeifer, T Qualitätsmanagement Strategien, Methoden, Techniken. 3. Auflage, München: Carl Hanser Verlag Pfeifer, T Praxisbuch Qualitätsmanagement Aufgaben, Lösungswege, Ergebnisse. 2 Auflage Carl Hanser Verlag Handouts
4 238 Quality Management Basic Fundamentals 1 Introduction 99.9% quality can mean the following: One hour of dirty drinking water every month! Two unsafe aircraft landings everyday at the Frankfurt Airport! 1,600 letters that get lost by the post every hour! 20,000 incorrect prescriptions for medicine every year! 500 failed surgical operation every week! 32,000 missing heartbeats for every person every year! 22,000 checks that are withdrawn from the wrong bank accounts! The idea of Zero-Mistakes really does make sense! As it was presented in the module Diversity and Gender, the intercultural differences can be worked out when one is aware of and actively considers issues of diversity and gender. How hard the customer is punished by a lack of quality is seen in a study conducted by the White House Office of Consumer Affairs. 90 out of 100 customers were dissatisfied with a product and therefore did not buy it again. Noteworthy is that of these unsatisfied customers only about 4% complained to the producer of the product. Each of these dissatisfied customers told between 9 and 20 potential customers about the poor quality of this product. The following poor quality (According to T. Pfeifer) 90% of customers who are dissatisfied with the quality of a product will avoid it in the future. Every one of these customers will share his/her opinion with at least 9 and up to over 20 others. Only 4% of the dissatisfied customers complained abou t the poor quality. Every mistake above the acceptable average of the market leader causes a decrease in the sales volume of at least 3-4%.
5 239 Basic Fundamentals 2 Total Quality Management (TQM) Total Quality Management (in German Umfassendes Qualitätsmanagement ) is a combination of management methods in an organisation that places quality at the center and counts the satisfaction of the customer, the employees and society as the reason for a business s long-term success. Break Down/Definition of TQM Terms Total implies that it deals with an all-encompassing strategy. It applies to all business sectors and all employees. TQM aims to create a company-wide inauguration/introduction, inclusion among all employees, an optimal business process. a partnership relationship to clients and distributors and an orientation for the company based on the interests of the public Quality is defined in DIN ISO 8402 as a unit created to fulfill the qualification of established and predetermined requirements. The term quality does not only apply to products but also to the process or potential factors of personnel resources and technical equipment. It is clear that quality also has an equally strong influence on cost and time factors. There are further factors beyond the value of a product that affect the customer s satisfaction. Modern TQM therefore places a great deal of importance on the company s customer-orientation and his/her satisfaction. Quality is based on whether the customer comes back, not on the product. Management describes all active leadership, planning, guidance and observation activities in a company. The management must implement the requirements for TQM and the reasons for its concepts on all levels of the company. This also means that the leaders place quality as the company s number one goal and be personally convinced of its effectiveness in order to act as a role model for the company.
6 240 Quality Management Transparency 1 Leadership Model for Total Quality Management According to T. Pfeifer: An overlapping domain or function (Process Orientation) A partnership-like relation with the customer (Customer Orientation) Inclusion of all company members (Employee Orientation) Dialogue and employee-involved publicity (Society Orientation) Work Quality Company Quality Potential Quality Process Quality Product Quality Management Task Quality (Meaning-oriented Actions) Management Quality (Role-model function) Team- and learning ability Perseverance
7 241 Transparency 2 Cause and Effect Connections in TQM s Goal System According to T. Pfeifer: Satisfied consumer Concern about sale Distributor Impressed customer Satisfied investors Secure jobs Appropriate processes reduce Company Product considered Appropriate processes Motivated employees support Superiour products fill employees with pride Enthusiastic customers Influence the company image
8 242 Quality Management Transparency 3 The Path to Total Quality Management According to Pfeifer: Establishing a TQM steering committee among the top management Conviction of Top Management Development of visions an goals Training for the management on the philosophies and concepts of TQM TQM Definition and Initiation Phase Initiation of the quality programs and initiatives Definition of operational goals and planning the next steps Regular and systematic evaluation of performance Ability of the employee Turnover and Continal Improvement Phase
9 243 Basic Fundamentals 3 International Organisation for Standardization (ISO) Source: Kurt Nagel (ed.): Practical Business Leadership Analysis In the process of developing a quality system it is most important to observe the given standards. In this the International Organisation for Standardization, known as ISO, has a great influence. The ISO is an umbrella organisation of over 50 national standard organisations with its headquarters in Geneva. The task of ISO is to create a unified standard based on the suggestions of the member countries. The existing guidelines are given to the national standardization organisations (such as the DIN in Germany and the ANSI in the USA) as recommendations, which are then either directly accepted by the countries or are implemented in an altered form. The existence of unified standards makes trade and information exchange easier to coordinate between the countries. ISO 9000 had a widereaching impact. It is an international standard in which a quality security system was described. This standard has a decisive influence on industry because companies cannot receive public contracts if they have not met this quality-security standard. The standard includes methods and procedures that must be established to guarantee that mistakes are avoided. In addition, the ISO 9000 establishes conformity through its internal test system as well as documentation and procedures in a quality security handbook. It is recommended to have an external service confirm that a quality management system that is up to standard exists in a company. Besides the ISO-Norm 9000 there are also the Norms 9001, 9002, 9003 und In detail the five norms have got the emphases: ISO 9000: Guideline for the choice and application of the Quality management norms and Quality-assurance-stages of proof ISO 9001: Model for demonstration of Quality assurance in Design/Development, Production, assembly and service ISO 9002: Quality assurance-stage of proof for production und assembly ISO 9003: Quality assurance-stage of proof for final tests
10 244 Quality Management Transparency 4 Contents of DIN EN ISO 9001 According to T. Pfeifer Responsibility of Management Quality policies and goals Quality planning Management evaluation Implementaton of responsibility and authorization QM handbook Management of documents and records Middle Management Personnel Set up Work environment Measurement, Analysis and Improvement Customer satisfaction measurement Testing processes and products Internal audits Direction of mistakes Continuing improvement process Correction and prevention Product realisation Agreement between customer s needs and product development Management of development processes Management of procurement Management of production procsses Testing Management
11 245 Continuing Transparency 5 Improvement Process (CIP) Organisation CIP Steering Committee CIP Contract CIP Test Committee CIP Project Groups (CIP moderators) CIP Experts (CIP moderators) Standard CIP CIP Spontaneous Group (CIP moderators Individuals Employees
12 246 Quality Management Basic Fundamentals 4 Continuing Improvement Process (CIP) CIP is a systematic approach to permanently improve the process and structure in which all employees participate. CIP guarantees that the workers develop recommendations based on their experience, professional knowledge, and creativity that will improve the current process. Goals of CIP Raise the economic level Improve the quality of the work results Increase work satisfaction Improve industry security Raise accident protection Improve environmental protection Critical Success Factors: Support from the leadership level Speedy decision-making concerning the suggestions A high rate of implementation Recognition of recommendations Goal-oriented moderation Openness of information Transparency of decision Mistake Culture In order for CIP to work it is expected that each person have a healthy Nothing is off-limits, everything can be improved and checked The ultimate is never obtainable because the goals will be continually developed Everything that does not promote reaching a fixed goal is a waste One does not get closer to the ultimate in one big step but rather through small steps Continued improvement cannot be planned from above without the affected employees involvement The internal establishment of the organisation of CIP should aim to implement CIP quickly and effectively. The CIP steering committee is the top-advising group in the process of establishing CIP. Tasks Steering and observation of all CIP activities Creating an order for decision-making Accepting, rejecting, and forwarding recommendations Rewarding the recommendations Implementing the recommendations Production of expert comments on the forwarded recommendations Establish CIP experts, project groups and a committee of quality control Leadership and observation by the CIP project groups Observation of the implementation of recommendations
13 247 The CIP contractor is the central person within the CIP establishment. H/She is the coordinator and promoter of the CIP processes. Tasks Motivation and consulting of all employees on the background of CIP Responsibility for the implementation of all CIP activities Preparation of the recommendations for the steering committee meeting Responsibility for the implementation of the accepted recommendations Internal and external reporting Education and training of the moderation pools Documentation of the submitted recommendations into a database The CIP controlling committee supports the steering committee concerning the CIP s needs by making decisions about the recommendations. Tasks Professional decision-making concerning the potential usefulness of the recommendations To test the subject and content of the recommendations to decide if they should be implemented or not To create concrete implementation requirements and framework conditions The selection of control members/members of the CIP controlling committee depends on the topic. CIP moderators are trained to lead groups through a problem-solving process and to use the positive effects of the group s work to bring them together. Tasks Coordination of opinion-sharing processes and need-solving processes within the group Methodological support of the group by analysing problems and making efforts to improve recommendations Procedural development on the basis of unanimous agreement The CIP project groups are work groups that work to find a solution to a distinct problem over a long period of time. Tasks Work to find concrete solutions to complex problems Supervision of accepted recommendations as they are implemented and the documentation of their results Characteristics Length of the CIP project group s work: usually up to 12 weeks Meeting frequency and length: based on need Participants: experts on different subjects as as needed by the CIP Support: moderator
14 248 Quality Management An expert CIP is a workshop where solutions to questions and improved recommendations are sought, under the leadership of a moderator. Tasks working to find concrete solutions to a complex problem within a week Characteristics: Length of an expert CIP: usually 4 days Meeting frequency and length: daily, for the entire day Participants: experts according to need, 4-6 people Support: CIP moderator A standard CIP is a work group that looks for recommendations to improve some positions. Tasks Work to find improvement recommendations for some work positions Find topics for expert CIPs or CIP project groups to work on Characteristics Length of a standard CIP: minutes Meeting frequency and length: once a month Participants: 5-8 employees per department (area) alternating participants is possible Support: CIP assistant CIP Spontaneous groups are work groups that are assigned to work on initiatives from the employees. Tasks Work on the improvement of recommendations Characteristics Length of a CIP spontaneous group: according to the agreements with the CIP contractors Meeting frequency and length: according to the agreements with the CIP contractors Members: according to the need Support: according to the need of the moderator The individual creativity of individuals is expressly supported. A suggestion with regard to CIP is always a submitted idea in writing that can make the work process safer, simpler, faster, less resource intensive and or more economical. CIP suggestions are usually assigned by the CIP contractor to formalized problemsolving groups such as the CIP project groups and the expert CIPs and the ideas are presented at the steering committee meeting.
15 249 The CIP contractors prepare the recommendations for the point when they can be decided on. A systematic preparation of the recommendations through the CIP contractors, guarantees fast processing in the CIP steering committee meeting. Written description of the recommendations Cost comparison calculation including a calculation of amorisation Cost-benefit evaluation Reward recommendation? Recommendation of CIP contractors to arrange an Expert CIP or a CIP Project Group Recommendations that are not immediately implementable can be worked on by an Expert CIP and/or a CIP Project Group and should be supported by a trained moderator for work groups. A list of instruments and tools support the process of recommendation development and recommendation processing. CIP Database CIP business order Method handbook for moderators CIP assistant CIP information sheet CIP recommendation sheet Managers carry a large percentage of responsibility for the successful introduction of CIP. The CIP Team expects that the managers will... ask subordinates in their department to participate in a CIP participate themselves in CIP support CIP contractors be responsible for carrying out CIP standards act as an ambassador for the CIP idea and actively work to convince others of its value change things when necessary, be convinced and to communicate this actively Obstacles that stop the process of continuing improvement must be dealt with early on. A high rate of absenteeism of expert and group participants A lack of support concerning the implementation of recommendations Not enough delegation of tasks, competencies and responsibility Engagement on the leadership level not visible
16 250 Quality Management Basic Fundamentals 5 EFQM The EFQM reference model is a performance-oriented diagnostic instrument with various applications. A platform for a continuing improvement process Supports planning and priority setting Identifies a company s strengths and weaknesses Acts as the base for benchmarking (internal or external) Supports the coordination of different projects Integrates single activities into one overall concept Acts as the basis for company evaluation The European Foundation for Quality and Management (E.F.Q.M.) was founded in 1988 by fourteen leading European corporations. British Telecom Robert Bosch GmbH Bull S.A. Ciba-Geigy AG Desault Aviation AB Elektrolux Fiat Automobiles KLM Royal Dutch Airlines Nestle AG Philips Electronics Olivetti Renault Automobiles Suzer AG Volkswagen AG Since 1992 the most successful European corporation has been rewarded the European Quality Award for business excellence. The prize is designed to: Reward companies that pay special attention to the issue of quality Inspire other companies to follow suit To sensitize the economy to the growing importance of quality as a competition factor Give all participants a rich amount of feedback from an independent source, the judge The reference model for business excellence is differentiated into two categories of company analysis, Qualifications and Results. Company Qualifications How? Results What?
17 251 Through company analysis a company receives points for the procedure and implementation of qualifications and the results one receives points for the goods and their amounts. Qualifications procedures X weight + implementation X weight = number of points for qualification Results goods X weight +amount X weight = number of points for results Total number of points The reference model for business excellence is an established basis for company analyses and designed for ideal vs. actual comparisons, or benchmarking. Employee orientation 9% Employee satisfaction 9% Leadership 10% Policy and Processes 14% Customer Business strategy 8% satisfaction 20% results 15% Resources 9% Image Responsibility 6% Percentage in numbers of weight: Qualifications 50% Results 50% The reference model is furthermore a performance-oriented diagnostic instrument with various applications. A platform for a continuing improvement process A support for planning and priority-setting Identifies strengths and weaknesses of a company Shows connections between activities and results Acts as a starting point for benchmarking Supports the coordination of different projects Integrates single activities into one overall concept ISO 9000ff can act as the starting point for implementing the EFQM model but is not an equal alternative!
18 252 Quality Management Basic Fundamentals 6 Environmental Management System DIN EN ISO ff The list of standards in DIN EN ISO ff consists of single standards. DIN EN ISO Environmental management systems specifications with directions for application DIN EN ISO Environmental management systems general handbook on principles, systems and instruments of support Principles for environmental audits 1. DIN EN ISO (General principles) 2. DIN EN ISO (Audit procedures audit of environmental management systems) 3. DIN EN ISO (qualification criteria for environmental auditors) The goal of ISO is to reach ecological as well as economical standards by avoiding stricter legal requirements. The environmental management system should show the best possible techniques with regard to cost and benefit norms. A management system according to ISO 9001 can act as the base for a quality management system of this standard. ISO is applicable for every organisation form, in every industry and in every country. A further instrument is the following system, which is applicable in the EU member countries: The EG Economic Auditing Rules (EMAS): The goal of the rule is the participation in this system to evaluate and improve industrial environmental protection, as well as educate the public sphere and others who are interested. This should be achieved by completing the following points: the creation and application of a EM (Environmental Management) system a regular evaluation of the EM system and The publication of information about industrial environmental protection These rules apply to every organisation in a member nation of the EU every industry every country in the EU The environmental system according to DIN EN ISO ff presents five essential steps Environmental policy: The top corporation managers must establish an environmental policy for their organisation. These foundations and its objectives are already the background for the first environmental test. The explained environmental policy should be required to continually improve its EM systems, avoid inflicting environmental damage and abide by the important environmental laws. All employees should be made aware of environmental policies, however it is not necessary for the public to know this information. The introductory step is connected to an increase of environmental aspects related to the functions, products and services that are connected to and influenced by companies. All environmentally-related supports should be documented. To fulfill and maintain an environmental management program one is responsible for realising the environmentally-oriented goalsetting and the individual goals (prioritizing with regard to the financial and personnel resources and the timeframe for their realisation).
19 253 By implementing and carrying this out the actual development of an EM System creates support for an environmental management system. The development and documentation of an EM system can follow in the existing organisation structure of a management system according to ISO 9001, at the same time. Important elements are: Organisation structure Training, awareness building and competence Documentation of the environmental management system The navigation of documents Process navigation Emergency support and procedural planning For the inventory and the development of an EM system, a regular standardized test is an important step. This EM system audit is carried out in a very similar way as the known QM system audit. Environmental responsibility supported by environmental contractors in established procedures of the EM system in the process of its continual tendency, measurability and effectiveness. Through the results of the evaluation and necessary changes in the environmental policy of a company, it must consider the former set of goals in order to implementthe necessary improvements.
20 254 Quality Management Checklist 1 Personal Quality Readiness Summary Personal Quality Readiness Source: Kurt Nagel (Ed.): Practical Company Management, Analyses, p. 35 If you wish to use the checklist to test your individual responsibility, give each answer between 0-5 points. There is a maximum of 100 points possible in the checklist. Personal Quality Readiness Points Quality philosophy Points: 1.1 Do I know the different guidelines (sayings) about quality? 1.2 Have I applied these guidelines to my field of work? 1.3 Do I regularly follow these guidelines with internal and external customers? 1.4 Do I motivate others to follow the business quality guidelines? 1.5 Am I always aware that the way I deal with customers as a deliverer of quality has the same value as the products and services in our company? Total number of points (max. 25): 2.0 Quality Policy Points: 2.1 Do I examplify the fixed quality goals in my work environment ( in my team, department and area)? 2.2 Am I certain in my work environment that there are concrete mass numbers to measure goal accomplishment? 2.3 Do I recognise the needs of my internal and external customers fully? 2.4 Do I make every effort to meet the requirements of the customer without making a mistake? 2.5 Do I learn from the mistakes of the past and regularly try to eliminate the causes of problems? Total number of points (max. 25)
21 Quality Procedures Points: 3.1 Can I prove that doing my work according to established rules was based on appropriate quality standards? 3.2 Do I see to it that faulty goods/returns are handled in a fast and customerfriendly way in my environment? 3.3 Do I know and use the methods that contribute to quality improvement? 3.4 Do I have good quality-improvement ideas for my partners (customers, distributors)? 3.5 Do I regularly attempt to update my knowledge about the latest quality security and quality improvement techniques? Total number of points (max. 25): 4.0 Quality Practice 4.1 Do I develop enough of my own initiatives with regard to the implementation of quality? 4.2 Would I describe myself as a role model of quality? 4.3 Do I also think about the impact on cost in connection with all the quality improvement procedures? 4.4 Do I try to attempt to create and carry out a win-win situation with customers and distributors in the quality process? 4.5 Do I keep the environmental impact in mind with regard to the allocation of resources, processes and methods? Total number of points (max. 25):
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